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Don't try this at home: private FLSA settlements rarely work

If you're a retailer who thinks you can settle a claim under the Fair Labor Standards Act on your own, think again. The U.S. Court of Appeals for the Eleventh Circuit (Alabama, Florida, and Georgia) rejected a resolution reached between the owner of a motel and his employee in an unpaid overtime dispute because the resolution wasn't a "stipulated judgment" as required by applicable case law. As the court pointed out, "[The parties] attempted to settle the litigation without the advice and assistance of attorneys, which only led to the involvement of more attorneys and more litigation." Generally, settlement of an FLSA wage claim must be supervised by the U.S. Department of Labor or a court.

Compare jurisdictions: Employment: USA

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